SEOUL, November 28 (AJP) - South Korea’s industrial output shrank at the steepest rate in five years in October on a sharp contraction in semiconductor activity that again underscored the economy’s heavy dependence on chipmaking, government data showed Friday.
According to the Ministry of Data and Statistics Industrial Output data, mining and manufacturing output declined 4 percent on month, the steepest drop since 7.5 percent in May 2020, and 8.1 percent on year, the sharpest since 8.3 percent in April 2023 amid global supply disruptions.
The slump was led by semiconductors, where output plunged 26.5 percent on year — the biggest contraction in 43 years. The fall reflects a tightening supply of legacy chips as Korean foundries divert capacity toward long-term AI and data-center clients and higher-performance semiconductor lines.
Weakness extended beyond manufacturing. Service-sector output slipped 0.6 percent on month, contributing to a 2.5-percent overall industry-wide decline, the largest drop since February 2020 at the onset of the pandemic.
Copyright ⓒ Aju Press All rights reserved.
